Global Payments Inc. (GPN) filed Quarterly Report for the period ended 2011-02-28.
Global Payments Inc. has a market cap of $3.9 billion; its shares were traded at around $48.92 with a P/E ratio of 19.3 and P/S ratio of 2.3. The dividend yield of Global Payments Inc. stocks is 0.2%. Global Payments Inc. had an annual average earning growth of 16.2% over the past 10 years. GuruFocus rated Global Payments Inc. the business predictability rank of 4-star.
This is the annual revenues and earnings per share of GPN over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of GPN.
Highlight of Business Operations:
On May 26, 2010, we completed the disposition of our DolEx and Europhil-branded money transfer businesses to an affiliate of Palladium Equity Partners, LLC for $85.0 million. We recognized a pre-tax loss on disposal of $25.2 million. We also recognized $15.7 million of tax benefits associated with the disposition. As a result of our May 2010 disposition of the money transfer businesses, this segment has been accounted for as a discontinued operation. Amounts related to our discontinued operations in our prior fiscal years statements of income have been reclassified to conform with the presentation in the current fiscal year. Please see Note 3Discontinued Operations in the notes to the unaudited consolidated financial statements for further information.
During the three months ended February 28, 2011, revenues increased $57.8 million when compared to the prior year. Revenues increased $122.6 million during the nine months ended February 28, 2011 compared to the prior year. Revenue growth was driven by our North America merchant services segment as a result of our direct ISO channel which continues to gain market share in the United States. Revenues for the three and nine months ended February 28, 2011 also increased by 20% and 8%, respectively, in our International merchant services segment compared to the prior year. This increase is due to solid business performance in the United Kingdom, Russia, and, particularly, the Asia Pacific region. In addition, our Europe merchant services revenue increased due to the impact of our acquisition in Spain on December 20, 2010.
Operating income for the three months ended February 28, 2011 increased $4.3 million, or 6%, when compared to the prior year primarily due to growth in International, offset by increased corporate expenses. Operating income decreased $8.3 million during the nine months ended February 28, 2011 compared to the prior year. The consolidated operating income decline was primarily driven by our North America business, specifically Canada which continues to operate in a more competitive market. Operating margins for the three months ended February 28, 2011 declined to 17.1% compared to 18.5% in the prior year. Operating margins for the nine months ended February 28, 2011 declined to 18.2% compared to 20.7% in the prior year. The decline in operating margins is due to the dilutive impact of ISO transactions, Canada pricing compression, the dilutive impact of our Spain acquisition and increased corporate costs, offset by improved margins in the International merchant services segment. Sales, general and administrative costs increased $89.7 million, or 17% due to employee termination benefits, relocation benefits and expenses related to a new Global Service Center in Manila, Philippines, and proportional increases in commission payments to ISOs as a percentage of ISO revenues.
For the three months ended February 28, 2011 currency exchange rate fluctuations increased our revenues by $4.9 million and our earnings by $0.02 per diluted share. For the nine months ended February 28, 2011 currency exchange rate fluctuations increased our revenues by $7.1 million and our earnings by $0.04 per diluted share. To calculate this impact, we converted our fiscal 2011 actual revenues and expenses from continuing operations at fiscal 2010 currency exchange rates. Further fluctuations in currency exchange rates could cause our results to differ from our current expectations.